GLOBALIZATION OF HYATT PLACE Harvard Case Solution & Analysis


Problem Statement

Historically, it can be seen that the company is consistently undertaking different strategies for growth purpose. The case reveals the fact that the company recently initiated a select services brand for which, the management is having trouble as to what strategies and entry mode should it use in order to remain successful.

Hyatt Hotels Corporation’s Motives in expanding its brand portfolio

Despite the number of offerings the company has made by introducing hotels in major parts of the world which mainly include China and India, the company is still in the motive to expand its brand portfolio in order to become the world’s largest corporation in the world. The motives for the expansion are explained below:

  • The first and the foremost motive for the expansion is to increase its current customer base with which the company can significantly enhance its current amount of revenues in order to reach new heights in the business
  • It can be seen that the technology as well as rapid globalization techniques adopted by significant multinationals are making the previous traditions as obsolete, and is therefore, every organization in order to remain in the business would have to come up with new initiates which can also be seen in the current company, which can help the business in order to remain an attractive place for its customers.
  • The other significant reason as adopted by several professional, talented holders are that they keep their holdings as much diversified as they can in order to increase their revenues by simultaneously decreasing their risk factors. It can be seen that with the recent initiative, the company can ensure that if any company in any continent is not performing well, there would be others who can overcome this problem.
  • It can be seen that with the increasing portfolio, the company is freeing up its existing holdings and enhancing its hospitality business all over the world.
  • The company with the help of this expansion could gain a competitive edge in the industry which could help significantly in fighting with the competitive pressures relating to the customer attraction very easily and could be able to maintain the good market share on the New York Stock Exchange.
  • Last but not the least motive of this expansion is related to strong customer loyalty which the company could be able to achieve by providing services in small budgets as well which could ultimately result in higher earning potential as compared with the other competitors in the industry.

Hyatt Hotels Corporation’s Motives in choosing an internationalization strategy for its lower category Hyatt Place brand

There are significant reasons why Hyatt Hotels Corporation chooses an international strategy even for its lower category brands which are described below:

  • The first and the foremost reason behind this initiative is to enhance its current profit position which could only be achieved in the international market and not in the domestic market which could have several limitations. It can be seen that the company is choosing those countries for expansion whose costs associated for the overall operations, are significantly lower than the other countries and due to their emerging nature, the revenues are expected to be higher with which, the company can ensure to have more profits.
  • The other major reason for choosing the internationalization strategy for lower category brand is to have significant growth opportunities. It can be seen that the company can increase its market share which could lead to increase sales revenues with the help of increased markets. It can be seen that the customers have always shown significant loyalty towards this brand which could be further improved in the other regions as well........................                                                     This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.
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